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Short bitcoin has been at the forefront of investor attention in recent months. Since its launch, it has amassed an impressive asset allocation and has not relaxed. This is not surprising as the market had started another bear run. However, last week, investors started to go the other way when it comes to short bitcoin. The inflow has now become an outflow.
Bitcoin investors are starting to make a profit
The CoinShares Digital Asset Fund Flows Weekly Report shows that investors have focused on short bitcoin outflows. For the past 7 weeks, short bitcoin had enjoyed consecutive influxes as the price of the digital asset fell. Now it looks like these investors are starting to enjoy the loot as they start taking money out.
For the first time in more than two months, short bitcoin outflows totaled $5.1 million. Interestingly, total assets under management (AuM) for short BTC remains high at $172 million, a new record high for the digital asset. So even though investors have withdrawn money, it only shows that profits are being made and not necessarily a shift in sentiment towards the investment vehicle.
BTC recovers above $20,000 | Source: BTCUSD on TradingView.com
On the other hand, long bitcoin saw only a small influx. This is also in line with the increased interest in short BTC. With inflows totaling $0.1 million for the 7-day period, it shows that institutional investors are still very bearish when it comes to the digital assets. Bitcoin’s total assets under management have now fallen to a new three-month low of $15.9 billion.
Influx in other areas
When it comes to outflows, most of it seemed to be localized only to the short bitcoin. Other digital assets, such as Ethereum, saw an influx this week. The digital asset, which is the second-largest cryptocurrency by market capitalization, had seen a lot of interest due to the completed merger, bringing in inflows of $7.7 million for the week. Sentiment was not optimistic, however, as the recently launched Short Ethereum investment product had recorded inflows of $1.1 million.
Some altcoins also saw a small influx during this period. Assets such as Cosmos and XRP received some attention from institutional investors, with inflows of $0.4 million and $0.5 million, respectively, over the week-long period. In addition, multi-asset investment products saw inflows reach $1.8 million over the same period.
Most of the influx came from Europe, totaling $15 million for this period. While on the other side of the pond, North America showed more bearish sentiment. The outflow was located in this region and reached $9.4 million.
Featured image from ZenLedger, charts from TradingView.com
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